Chances are that you've probably heard of an IRA but for some reason may be unsure about how one works.
The plain and simple truth is that an IRA is actually a pretty simple and useful investment tool. Similar to a 401k there is quite a bit you can do with one to help you save for retirement and reach your financial goals.
But before you can do that, there are a few simple basics you should understand. Not everyone is eligible and in some cases you might be better off concentrating on your other retirement savings tools. Here are the main points that will answer "how does an IRA work" and get you prepared to decide if one is right … [Read more...]

Setting up an Individual Retirement Arrangement (IRA) is a very popular way for people to save money for retirement. They are investing in their future by depositing money every month, or even more often, to make sure they have enough resources to live on when they leave the workforce. However, a growing number of investors are frustrated with the lack of control they have over their IRA investments. They want to know how to set up a self-directed IRA, which will allow them to have full control over how their money is invested.
A self-directed IRA is just like a traditional IRA except you choose exactly the assets you want to invest in. … [Read more...]

Many people who are fortunate enough to have a 401k retirement plan through their employers never understand all the benefits associated with this versatile retirement savings option, particularly if their employer has granted them self-directed benefits. Employers who offer a self-directed 401k plan to their workers have given them the flexibility to invest in any asset, as long as it is legal according to the Internal Revenue Services and the self-directed 401k rules.
If your employer offers a self-directed 401k plan, consider yourself very fortunate. You have the ability to increase your retirement savings by investing in other assets … [Read more...]

You know you need to prepare for your future. You understand that the only way you are going to be able to retire at a reasonable age is to have money set aside that you can live on without having a job. However, what you don’t know is how to get started. The best place to start is to understand that the only good financial plan is a comprehensive one. Comprehensive financial planning is a tool for giving you the exact steps you need to take to meet your financial goals.
No one else has the same exact goals as you do, so it is important to ensure your plan meets your needs and not anybody else’s needs, meaning you should not seek financial … [Read more...]

There is little doubt that retirement investments can be confusing.
There are so many types of accounts available with all sorts of abbreviations and initials that it becomes overwhelming when you have to choose one or the other and expect it to provide you with an income when you retire. Moreover, some differences between the accounts are so minute that if you don’t work in the industry you might not even realize there is a difference at all.
Such is the case with 401ks and IRAs. On the surface they are very similar and they have similar rules regarding contributions and withdrawals. However, to answer the question, “is a 401k an … [Read more...]

A self-directed IRA is a type of retirement account that requires the owner to make his own investment decisions on behalf of the plan. The Internal Revenue Service (IRS) requires the assets in this type of IRA be held by a qualified trustee, also known as a custodian.
In general, the custodian is required to maintain all assets, transactions, and records on behalf of the account owner. In addition, the custodian ensures that clients understand the self-directed IRA rules that govern these retirement accounts. It is very important to follow these regulations because falling out of compliance can lead to significant tax … [Read more...]

You may not realize it, but when it comes to saving for retirement using an IRA, you don't necessarily have to stick to just mutual funds and stocks. If you're a little more aggressive and willing to take on some risk, then perhaps setting up a self directed IRA would be a better alternative.
A self directed IRA is a special type of individual retirement arrangement that allows an investor to choose from a wider range of investment options than are usually available with a typical IRA. By doing so the investor exposes themselves to the potential for much higher returns than they might receive from a stock market index fund based … [Read more...]

Perhaps you’ve just started working for a company that offers a 401k plan and you need to know how does a 401k work? Or maybe you’ve been avoiding your employer’s 401k plan because you aren’t sure how to make it work best for you. Either way, it’s important for you to take advantage of any retirement plan you have available to you or you could end up without enough money in your golden years.
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Do your eyes glaze over when people start talking about retirement investments? Could you use a simple 401k definition that you don’t need a degree in economics to understand? If so, then let me explain. Believe it or not, most people do not fully grasp what their 401k does for them. Most of the time, they understand the general concept, but the details escape them.
So, it’s okay if you have a 401k but don’t really know why. You’re in the majority. However, if you want to make your retirement account work harder for you, it is to your advantage to get a more complete picture of the product. However, that doesn’t mean you need to enroll in … [Read more...]

If you think you make too much income to stash away your money away into an individual retirement arrangement (IRA), then I have good news for you. Very few people realize that you can contribute to a non deductible IRA regardless of your income level and still enjoy the benefits of tax free investment growth.
Using this account to boost your retirement nest egg will make a great addition in your overall strategy to maximize the potential of your 401k and IRA savings.
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